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Five and twenty pound notes laid out on table

How To Pay Off Debt When You’re Unemployed

Written by Alex Swindells on . Posted in Bankruptcy, Debt help, IVA.

Unemployment can be stressful, particularly if you aren’t prepared for it when it happens. Not only do you have the pressure of looking for another job whilst trying to pay your utility bills and rent/mortgage, but if you’re already in debt, then this can add further stress if you’re unable to make regular payments. 

The average UK person has an unsecured debt of £3,817. The types of unsecured debt include credit cards, personal loans, or overdrafts. 

And, of course, if you’re unable to pay for the cost of living, you may see yourself going even further into debt with no means to repay your creditors. 

Paying off debt while unemployed can be hard; however, there are actions you can take to help limit the amount of credit you use. 

Additionally, there are debt solutions available, such as a DRO (Debt Relief Order) or a DMP (Debt Management Plan), that can help to relieve your financial stress.

Ways to Help Reduce Debt:

It is worth getting in touch with your creditors to explain your unemployment status and, because of it, that you’re struggling to make repayments. Your creditors may give you some breathing space on the proviso that you’ll restart paying your debt once you’re back at work. 

In the meantime, consider the below points:

  • Try to avoid further use of your credit card or dipping into your overdraft. 

Also, don’t be tempted to increase your overdraft or credit card limit since the credit will only help you temporarily, and you’ll put yourself further into debt, particularly if there’s interest to pay, which there generally is.

To help prevent you from using more credit, cut down on your expenditures. Only buy the necessities. Set out a budgeting plan and stick to it. With any money left over, use it to slowly start chipping away at your debt. 

  • Avoid taking out any more payday loans. 

Increasing your debt whilst you’re unemployed will make your situation worse. This is especially the case with payday loans because they tend to have very high-interest rates. 

Options for Debt Help When Unemployed

If you’re in debt and without a job, then it may feel like there aren’t any means to ease your financial situation.  

However, some options may be available to you if you meet certain requirements.

Below, we have provided a summary of these options to help with your debt.

1. Breathing Space

If you live in England or Wales, you can get temporary protection for up to 60 days from your creditors while you consider your options and get debt advice. This is a Government scheme called ‘Breathing Space’.

If you receive it then:

  • enforcement action cannot be taken against you
  • your creditors cannot contact you about debts included in your Breathing Space
  • your creditors cannot add interest or charges to your debt, however you will ultimately remain responsible for your debt repayments

To apply for the ‘Breathing Space’ scheme, you need to talk to a debt adviser who will check you are eligible. If you are, then will submit an application on your behalf. You can look for a ‘debt adviser’ on the MoneyHelper website.

2. DRO (Debt Relief Order)

A DRO allows your debt, and any interest owed, to be put on hold for twelve months. 

To be able to apply for a DRO, your debt must not exceed £30,000, you must reside in England, Wales, or Northern Ireland, and you can’t be a homeowner. 

Once you have a DRO in place, your creditors will be unable to take legal action against you.

After twelve months, when the DRO is complete, if you continue to meet the eligibility criteria, then any outstanding debt will be written off. 

Although this can be a useful solution for many people, one essential criteria that must be met is that you have less than £75 per month left over after paying your essential bills. If you get back into work during the twelve-month period, and you have more than £75 available then it is likely that you will have to find an alternative debt solution.

Woman paying with card via her phone

3. Bankruptcy

Bankruptcy could be a debt solution to consider. This is a legal status where your valuable assets (these do not include ‘tools of the trade’ or items that are necessary for living, such as clothes and furniture) are sold to pay what you owe to your creditors.  

You can file for bankruptcy regardless of how much debt you’re in. When applying, you’ll need to pay £680 to the Insolvency Service. 

Once you’re declared bankrupt, creditors can no longer take legal action against you. 

The details of your bankruptcy will be published on government-owned websites; the Gazette, and the Insolvency Practitioner. 

Additionally, the details of your bankruptcy will go on to your credit report and will remain there for six years.

There are bankruptcy restrictions that you’ll have to abide by, but you are usually released from these after twelve months.

Bear in mind that people in receipt of benefits, with no other income, will not be asked to make a monthly payment contribution into the bankruptcy to reduce their debts. However, if a person does become employed during their bankruptcy, they may be required to make regular monthly contributions.

4. DMP (Debt Management Plan)

A DMP is an informal arrangement between you and your creditors where you use a third-party company to set up a payment plan to pay off your debt. 

Your financial situation will be assessed and a figure decided as to what you can realistically afford to pay each month. 

You’ll still have to pay the full amount that you owe to your creditors; however, since your monthly payments will be reduced, your finances will be a lot easier to manage. 

Additionally, the payment plan is flexible, so if your situation changes, then a new amount that you pay each month can be negotiated.

This is a suitable option for you if you have many unsecured debts (non-priority debts). 

The DMP will come to an end once all of your debt has been cleared. 

Using a calculator for debt management

5. Individual Voluntary Arrangement (IVA)

An IVA (Individual Voluntary Arrangement) is a legally binding but flexible agreement that can be arranged by an Insolvency Practitioner to help you repay your creditors in an affordable way over a set period of time. 

Before the payment plan is arranged and put forward to your creditors, your income and expenditure will be assessed by your IP. This is to ensure that you have enough money each month to pay for necessities, such as your rent/mortgage, bills, and food. 

Once an affordable amount for the payment plan is decided, and if it’s accepted by your creditors, then you’ll have to pay the agreed amount each month and stick to the agreed terms until your circumstances change.

If you find a new job, and your income increases, then get in touch with your Insolvency Practitioner who will reassess your circumstances. If you can afford to pay more towards your debts, then you will be required to do so.

We hope that you’ve found this blog useful by discovering ways to help you out of debt.

If you want to find a debt solution that is right for you, then get in touch with Swift Debt Help, and one of the experienced members of the team will call you to discuss your options. 

Request a Debt Assessment

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

Bankruptcy

Top 5 Bankruptcy Myths

Written by Alex Swindells on . Posted in Bankruptcy, Debt help.

Have you been struggling with debt and looking for a solution to help you out of your financial situation? You may have considered bankruptcy but are concerned that there’s a stigma attached to choosing this debt solution. Well, there are a few myths regarding bankruptcy that we’re going to uncover in this blog, which will, hopefully, help you see a clearer picture of what bankruptcy involves. 

Before we go into some of the bankruptcy myths, let’s summarise what bankruptcy is.

Bankruptcy is a legal status that allows you to obtain a clean slate if you’re in debt. You can file for your own bankruptcy regardless of how much your debt is; however, if your creditor decides to apply to make you bankrupt, then your debt needs to exceed £5,000.

It costs £680 to apply for bankruptcy. To pay for this as well as any other administrative fees some of your assets may be sold. Whatever money is left will be shared between your creditors to pay off your debt. 

If you manage to repay all of your creditors, then you may apply to have your bankruptcy cancelled. 

After twelve months, regardless of whether you’ve repaid all of your creditors or not, your bankruptcy should come to an end as long as you’ve stuck to the agreed terms. 

So, what are the bankruptcy myths?

1. Everyone will know that I filed for bankruptcy

Once you’ve been made bankrupt, then it does become public information. The details of your bankruptcy will be published on two government-owned websites: the Gazette and the Insolvency Register. 

However, unless your case is already high-profile, then it’s unlikely that the information will be published in your local papers. 

So, people can search for the details of your bankruptcy and this information will be available for them to view, but they’d already have to know about your bankruptcy to do this. 

2. You always lose your job if you file for bankruptcy

Are you wondering whether you should file for bankruptcy if you have a job? You may be concerned that your job could be affected. 

Well, the impact bankruptcy has on your job does depend on the type of job that you have and in which sector you work. 

For example, if you work in a bank or for the police, then your bankruptcy could affect your position. You might not necessarily lose your job, but the duties you usually perform may be changed. 

However, in most cases, you are not legally obliged to share your bankruptcy with your employer. Ensure that you read your contract thoroughly to understand the terms set out by your employer. If you’re still unsure after checking your contract, then speak with your employer. 

Your employer must treat you fairly. If they decide to dismiss you, then seek external advice to ensure that your employer has treated you fairly and to find out whether you can challenge the dismissal. 

Empty boardroom

3. You will lose all of your assets 

A lot of people tend to think that once a person goes bankrupt they will lose everything. This isn’t true.

If you go bankrupt, then certain items will be excluded from the assets that are sold to pay off your debt. 

For example, any items that you need to be able to work, such as books, equipment, or even a vehicle, will not be taken from you. These items are known as ‘tools of the trade’. 

Additionally, you will be able to keep any items that are necessary for you to function normally, such as clothes, furniture, kitchen appliances, and so on.

Pound notes

4. I’ll never be able to get credit again 

You may have limited access to credit options for up to ten years after your bankruptcy has ended, or for as long as the bankruptcy stays on your credit record, which is usually for six years.

However, if you actively try to manage your credit report, then you can work at increasing your credit score. 

For example, making all of your payments on time, taking out small loans and managing these well, and making sure you’re on the electoral register are all factors that can help to increase your credit score. 

Additionally, you can do all of the above even while the bankruptcy is on your credit report. 

5. Bankruptcy gets rid of every type of debt 

Most types of debt are covered by Bankruptcy and you will be released from them when you are discharged. These include debts such as unsecured loans, council tax arrears, utility debt, However there are some debts that are not included within a bankruptcy that you are still responsible for paying. These include:

  • Debts gained by fraud
  • Money owed under family proceedings (maintenance and lump sum settlements)
  • Damages payable to anyone for personal injuries
  • Student loans
  • Court fines
  • Debts created after the bankruptcy order

We hope that this blog has helped you to decide whether bankruptcy is the right financial solution for you. 

But if you wish to know more about bankruptcy, then Swift Debt Help can offer some further bankruptcy advice.

Request a Debt Assessment

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

empty wallet from effects of debt

4 Alternative Solutions If Your IVA is Rejected

Written by Alex Swindells on . Posted in Bankruptcy, Debt help, IVA.

An Individual Voluntary Arrangement, commonly known as an IVA, is a legally binding agreement between you and your creditors that helps you pay off your debt in an affordable way. 

An Insolvency Practitioner (IP) will assess your income and expenditure to determine how much you can afford to pay. Your IP will then put a repayment plan forward to your creditors, detailing why you’ll be paying the amount suggested. It is at this point that your IVA can be rejected by your creditors. 

If your IVA is rejected, this does not stop your IP putting forward another repayment plan to your creditors. However, if your IVA is rejected again, or if you have come to the conclusion that an IVA debt solution isn’t right for you, then it should be a comfort to know that there are other options available which could help you in your financial situation. 

We have put together some of the pros and cons of debt consolidation, bankruptcy, a debt management plan, and a debt relief order, to hopefully help you decide on the best option for you.

1) Debt Consolidation Loan

Debt consolidation is a term used when you have several debts which you decide to combine into one loan. This can be done by taking out a new loan in order to pay off your original loans. There are a few pros and cons to debt consolidation. We have listed some of these below.

Pros:

  • All of your debts will be in one place.
  • Once the original loans are paid off in full, you will no longer be threatened with legal action by the initial creditors. 
  • The debt of your new loan can be repaid through monthly installments. As It’s only one loan that you’re repaying, the interest rates can be much lower, making it more affordable.

Cons:

  • If you have poor credit, then it’s unlikely that you’ll be approved for a new and bigger loan. 
  • If you are approved, then the interest rate could still be high, although you’ll only be paying for one loan.
  • There may be extra costs involved so it is important that you seek impartial advice.

 

2) Debt Management Plan

A debt management plan is an informal arrangement between you and your creditors where you use a third-party company to set up the plan and distribute money to them. As with debt consolidation, there are a few pros and cons to a debt management plan and we have listed some of these below.

Pros:

  • It can be relatively easy to arrange.
  • You can make one regular monthly payment. 
  • You pay back your debt in full, but at an affordable rate for you through reduced monthly payments.

Cons:

  • Your debts must be paid in full.
  • If your creditors decide they are no longer happy with the informal arrangement that you agreed upon, then they could still take legal action against you.
  • It could take longer for you to be debt-free than other formal debt solutions.

3) Bankruptcy Pros and Cons

Bankruptcy is a legal status which allows you to obtain a clean slate. If you owe less than £30,000, then you might be able to get a debt relief order (see more on this below). But in terms of bankruptcy, there are a few pros and cons to consider. We have listed some of these below.

Pros:

  • Most types of debt can be written off if you cannot pay them.
  • Once declared bankrupt, creditors can no longer take legal action against you. 
  • In most cases you will be discharged from Bankruptcy after 12 months.

Cons:

  • Some of your assets may be taken from you and divided equally to pay off your creditors.
  • Your bankruptcy is publicly available information. Details will be published in the London Gazette and on the Insolvency Register.
  • If you have a business, this can be taken from you or sold.

4) Debt Relief Order Pros and Cons

A Debt Relief Order (DRO) is an alternative to bankruptcy if you have limited assets and affordability. There are a few pros and cons to a DRO and we have listed some of these below.

Pros:

  • Any future interest and charges will be frozen on any debt you owe. 
  • Your creditors will no longer be able to take legal action against you.
  • Your DRO will only last twelve months after which any debts will be written off.

Cons:

  • To be considered for a DRO, you must meet certain criteria, such as your debts must not exceed £30,000 and you must reside in England, Wales or Northern Ireland. Also, your surplus income must not exceed £90 per month.
  • Homeowners are not allowed to apply for a DRO.
  • Your DRO will go public, appearing on the public register.


Now that we have detailed some of the pros and cons to various debt solutions, you may find it easier to decide which option will suit you best. However, if you are still in need of IVA debt help, then contact us today.

Request a Debt Assessment

May not be suitable in all circumstances, Fees may apply, your credit rating may be affected.

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

Woman at computer on tablet

5 Things To Know Before Declaring Bankruptcy

Written by Alex Swindells on . Posted in Bankruptcy, Debt help.

Declaring bankruptcy may be your only option if you have mounting debts that you are unable to pay. However, bankruptcy is not something you should rush into because it has long term effects on your life and your finances. Here are five things you should know before declaring bankruptcy.

1. Bankruptcy can have an impact on your assets

Hand drawing of man in shirt and tie losing his assets to bankruptcy

When you declare bankruptcy, you are required to make a reasonable effort to pay back your debts, and this often includes using your assets. Things that are considered essentials, like clothes, furniture, and cooking appliances are protected. However, other belongings will be passed on to the Official Receiver, the person that deals with your bankruptcy. These will then be sold to raise money to pay your debts. 

Items that you are allowed to keep include:

  • Clothes 
  • Furniture
  • Household appliances
  • Tools required for your job
  • A car that you need for work or other basic needs (if you are disabled, for example)

There are some exemptions and if certain assets on this list are valued very highly, they can still be sold. For example, you may be forced to sell your car and you will be given £1,250 to buy a cheaper replacement, with the rest of the money being paid towards your debts.

Jointly owned assets can also be affected. If they are sold, the money will be split between the Official Receiver and the person that has a shared interest in the asset.

Depending on your situation, you may have to move home when you declare bankruptcy. If you rent your home, you will not be affected and your landlord will not be informed. But if you own your home, you may be required to sell it to raise money to pay your debts. In some cases, you can prevent this. 

The official receiver has three years to decide what to do with your home. If they have not taken steps to sell it in that time, your interest in it is restored and you can keep your home.

It is important that you consider how your assets will be impacted before you declare bankruptcy.

2. If you own a business, bankruptcy will have an impact

Drawing of chart a declining chart with an arrow pointing downwards

When you declare bankruptcy, there are specific rules related to the running of a business. For the 12-month period of your bankruptcy, you are forbidden from acting as the director of a limited company or managing it in any way without the permission of the court. The company itself can continue to operate but you will need to appoint somebody else to manage it for you. 

If you are self-employed and registered as a sole trader, the rules are different. You will be able to continue operating as normal, but if you run a business under a name that’s different to the one in which you were made bankrupt, you must tell everyone you do business with the name under which you were made bankrupt. 

Bankruptcy will also be recorded on your credit reports for six years. This can seriously impact your ability to get credit in the future, which can be a big problem for businesses.

Business owners might want to explore other options like an Individual Voluntary Arrangement to avoid the restrictions on their ability to run their company.

3. Your bank accounts could be frozen

Young woman feeling displeased about debt on her credit card while checking bank account over laptop at home.

The Official Receiver takes control of all of your assets, including your bank account, when you declare bankruptcy. This often means that your bank accounts are frozen and you cannot withdraw any money. If you have money in your account that is required to meet your essential living costs, the Official Receiver will arrange with the bank to release those funds to you. The bank will then decide if you can continue using your account.

4. Bankruptcy doesn’t cover all of your debts

Pound coins stacked on top of each other on a table

Writing off debt is one of the major benefits of bankruptcy but not all debts are covered. You must understand exactly which debts are not covered because you will still be liable for them, even if you file for bankruptcy. Debts not covered include: 

  • Secured debts
  • Child maintenance debts
  • Student loans
  • Court fines 

5. Take the right steps before declaring bankruptcy

Person wearing running shoes taking steps up the stairs

There are some key steps you must take when declaring bankruptcy to minimise the impact.

Ensure bankruptcy is the right debt solution for you

Bankruptcy is not always the right debt management solution. Look into options such as Debt Management Plans (DMP), Debt Relief Orders (DRO) or Individual Voluntary Arrangements (IVA) before declaring bankruptcy. You may be able to limit the impact on your credit reports and avoid financial restrictions by finding a different debt solution.

Apply for bankruptcy

The next step is to fill out the necessary paperwork and pay the fee of £680. This can be paid in instalments, if necessary, with a minimum payment of £5. However a bankruptcy order will not be granted until the fee is paid. You will find the forms on the gov.uk website.

Set a budget from your living costs

As part of your bankruptcy application you will need to write a budget based on your essential expenses. When you declare bankruptcy, you will not be permitted to spend anything else as all additional money will go towards your debts.

Cooperate with the official receiver

The Official Receiver is the person that manages your bankruptcy. They will contact you within two weeks of your application to discuss your bankruptcy. They also take control of your assets. You need to work with them while they distribute your money and assets to pay off a portion of your debts.

Pay back your debts and discharge from bankruptcy

Now that everything is in place, you may need to continue paying towards your debts for up to 3 years – this is dependent upon your circumstances and your disposable income after meeting your essential outgoings. As long as you cooperate with the Official Receiver and meet all of your obligations, you should be discharged from bankruptcy after 12 months. 

Declaring bankruptcy may be the solution to your debt problems but it is not always the only option. If you need advice about managing your debts, fill out the contact form to get in touch with Swift Debt Help today. We can talk through your different options and help you regain your financial freedom.

Request a Debt Assessment

May not be suitable in all circumstances, Fees may apply, your credit rating may be affected.

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

Pay debt sticky note

How To Clear Council Tax Debt

Written by Alex Swindells on . Posted in Debt help.

If you are in a difficult financial position and you are unable to make your council tax payments on time, you will end up in arrears. You still owe the money for the missed payments to the council on top of any future payments. So, it is easy to quickly build up significant council tax debts if you cannot afford to pay. There comes a point when the council will take action to collect the debt and if you fail to pay, there could be serious consequences, including criminal prosecution in some cases.

Fortunately, there are ways to manage the situation and either clear the debt or have a portion of it written off so you can pay the rest. This guide will outline the different options available to you and help you clear council tax debt before it gets worse.

Dealing With Council Tax Debt

Row of credit cards

What Are The Consequences Of Not Paying Council Tax?

Failing to pay your council tax debts can lead to serious consequences. The severity of the action that the council takes depends on how much you owe and how long you have held the debt for. Potential consequences include:

  • County Court Judgements
  • Bailiffs arriving at your home
  • Repossession of your assets
  • Prison sentences in the case of continuous missed payments

These are the most drastic consequences of failing to pay council tax, but you will be given options before these steps are taken. When you first miss a payment, the council will send you a reminder within two weeks. You will be given seven days to pay and if you make the payment on time, no further action will be taken.

However, if you fail to pay after being sent a reminder, you will then receive a final notice. This gives you another seven days to pay. If this is your third missed payment within a year, you will get a final notice immediately without a reminder first.

Continued failure to pay will lead to more serious consequences like those discussed above. At this stage, the council may take you to court and take out a Council Tax Liability Order against you. The court will order you to pay the full amount and give the council the right to apply to send bailiffs who can seek to take control of your assets to repay the debt. You will also have to pay the court fees, so your debt is increased. But you can avoid this if you settle the debt before your court date.

As well as sending bailiffs to collect the debt, the council can also take money from your paycheck or benefits including:

  • Universal Credit
  • Employment and Support Allowance
  • Pension Credit
  • Jobseeker’s Allowance
  • Income Support

The money will be deducted automatically and you will be unable to avoid this unless you can find another way to pay. If the deductions will make it difficult to pay other bills, you can discuss this with the council and they may agree to take a reduced amount so you can avoid further financial difficulty.

In certain circumstances, you can be sent to prison for not paying your council tax. If you are in legitimate financial difficulty and there is no way that you can afford to pay the debt, it is very unlikely that you will be sent to prison. However, if you refuse to pay and the court decides that you do not have a good reason for failing to pay, you can be put in prison for up to three months.

A single missed payment can usually be dealt with easily, but if you are in a difficult financial position and you build up significant council tax arrears, the situation can quickly spiral out of control. That’s why it’s important to take action sooner rather than later.

How To Deal With Council Tax Arrears

Person using ATM machine

1. Do not ignore your debt

The worst thing you can do is ignore your debt and hope that it goes away because it won’t. When you miss a payment, you should contact the council immediately, before they’ve even sent you a reminder. There are options to help you manage your council tax bill and avoid further missed payments in the future and the quicker you put measures in place, the easier it is to avoid council tax arrears. 

Call your council and inform them that you have missed the payment as you are unable to afford it. Ask them about payment holidays or payment plans. Many councils will give you a break from payments or agree to a reduced monthly payment with you if you cannot afford to pay. This allows you to continue paying, and the council are aware of the situation so they will not take further action against you.

There is also additional help available to you and it’s important to claim everything you are entitled to. We will discuss this in more detail later.

2. Figure out what you can repay

When you are already in arrears and you cannot afford to repay the full amount, you should still offer to pay a percentage of the debt. By paying off a portion of the debt, you can delay further action and give yourself more time to get your finances in order. So, you need to figure out what you can realistically afford to repay. This is also important if you are trying to negotiate a reduced monthly payment with the council.

Make a detailed budget with your income and all of your outgoings. Make sure that you include all small bills like subscriptions as well as your main utility bills. This will give you a clear idea of how much money you have left each month after making all of your essential payments. You can then use this figure to make an offer to the council. When determining how much you can afford to pay, make sure that you have accounted for all outgoings and don’t put yourself in more financial difficulty by offering to pay too much.

The aim is to be able to pay off as much of the council tax debt as possible while also maintaining your other financial responsibilities and avoiding further missed payments in the future.

3. Apply for everything that you are entitled to

You can apply for assistance if you are having difficulty with your council tax bills. As discussed earlier, you can ask the council for a payment holiday or reduced payment plan. If you are on a low income, you can also apply for a council tax reduction (CTR). This is a long-term reduction in your council tax bill so it is more affordable. Every council has their own system for taking applications and granting reductions, so you will need to get in touch with your council and find out about the process. However, they usually consider the same factors when making their decision:

  • Your household income – this includes every adult in the household and all benefits you claim.
  • Your circumstances – whether you rent or own the house, if you have children, etc.
  • The area that you live in.

You are not guaranteed to be granted a CTR, but you should always apply because it can make things more manageable. Depending on your income, you may be entitled to up to 100% off your council tax.

Certain groups are exempt from council tax in the first place, so make sure to check this too. Exempt groups include: 

  • Under 18s
  • Students (including apprentices and nurses)
  • People with a severe mental impairment
  • Live-in carers (as long as the person you care for is not a spouse, partner, or child under 18)
  • Diplomats
  • Recipients of money from the Education and Skills Funding Agency (as long as they are under 25)

If you or somebody in your household falls into one of these categories, you may not have to pay council tax at all, or you may be eligible for a partial reduction.

There are also income support programmes in place for people that are struggling financially. If you are unable to afford your bills, see whether you are eligible for Universal Credit, Child Benefit, Child Tax Credit, and Housing Benefit, as well as a CTR.

Many people find themselves in council tax arrears because they have not claimed all of the financial assistance that they are entitled to. With a bit of extra help, you may be able to avoid the situation in the first place.

4. Apply for an IVA

Council tax arrears can quickly build up and if you are unable to repay them, you need to explore debt management solutions. An IVA (Individual Voluntary Arrangement) is one of the options for dealing with council tax debt. 

An Insolvency Practitioner will assess your finances and determine how much you can afford to pay each month. They will then make an offer to your creditors and, in most cases, negotiate a portion of the debt to be written off. If your creditors agree to the IVA, you can start making monthly payments. Ordinarily, you will pay the debt over a period of five to six years, after which you will be debt free. During your IVA, you are also protected against further action, including bailiffs.

Still Need Help With Council Tax Arrears?

If you are having difficulty with council tax arrears, Swift Debt Help can give you the advice you need. Our experts will discuss different debt management solutions with you and guide you through the process, so you can be debt free. Fill out the contact form below and we will get back to you soon. 

Request a Debt Assessment

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.